Philadelphia, PA: A complaint has been filed in the United States District Court for the District of New Jersey on behalf of all New Jersey homeowners whose mortgage loans have been serviced by CitiMortgage, Inc., and who, since April 13, 2009, (1) have entered into a Trial Period Plan ("TPP") contract with CitiMortgage and made all payments required by their TPP contract, but (2) have been denied a permanent loan modification agreement that complied with the U.S. Department of the Treasury's Home Affordable Modification Program ("HAMP") rules.
The Complaint alleges that CitiMortgage accepted billions in government bailout money under the Troubled Asset Relief Program ("TARP") earmarked to help struggling homeowners avoid foreclosure. CitiMortgage, like other TARP-funded financial institutions, is contractually obligated to modify mortgage loans it services for homeowners who qualify under HAMP, a federal program designed to abate the foreclosure crisis by providing mortgage loan modifications to eligible homeowners.
According to the lawsuit, CitiMortgage systematically slows or thwarts homeowners' requests to modify mortgages, depriving borrowers of federal bailout funds that could save them from foreclosure. The bank ends up reaping the financial benefits provided by TARP-funds and also collects higher fees and interest rates associated with stressed home loans.
CitiMortgage Class Action Legal Help
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Posted by Susan Lazzaro
I have been fighting with CitiMortgage for 5 years and have been paying a lawyer for that long. They have denied me a loan modification 3 times and when I offered to pay all interest I owed along with penalties and finance charges and then to continue my loan where I left off they turned down my offer wanted all or none.
Now I have been threaten with them suing me for the full amount of my loan or lose my house. They only way to save it was to enter into this trial period where they doubled the amount of my monthly payment, doubled the length of my loan and doubled the interest rate.
I had worked extremely hard over the past 3 years 100+ hours a week and have out priced myself for a decent modification. However I cannot keep up with this pace and will eventually have to give up one or two of my 4 jobs and I will end up defaulting on this new loan they gave me.
Posted by Donna Yetto
I lost my house after making the trial payments, instead of lowering my interest rate, which I owed 120,000, they sold it for 32,000. It has been sitting empty for the past 2 years. That really helped the community..........
Posted by Audrey Watkins-Kizee
We were denied a modification by CitiMortgage after we paid 10 months of trial payments and sent in all paperwork. Now our house is in foreclosure.
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